NEW DELHI: Consumer confidence among Indian households surged 2.9 percentage points in August, growing month-on-month, according to the monthly Refinitiv-Ipsos Primary Consumer Sentiment Index (PCSI) for India released on Friday.

The monthly PCSI records consumer attitudes on the current and future state of local economies, personal finance situations, savings and confidence to make large investments. The index is composed of four sub-indices: current conditions index; expectations index; investment index; and jobs index.

The monthly PCSI, which is driven by aggregation of four weighted sub-indices, is showing recovery and improvement over the previous month, Ipsos said.

The PCSI employment confidence or jobs sub-index moved up 4.5 percentage points; the PCSI current personal financial conditions or current conditions sub-index reported was up 3.9 percentage points. The PCSI investment climate sub-index reported a jump of 3.7 percentage points, while the economic expectations sub index, moved up by a miniscule 0.4 percentage points, Ipsos said.

Consumer confidence is on a rebound in August, said Amit Adarkar, CEO, Ipsos India. Overall sentiment, however, continues to remain lower than what we witnessed before the pandemic hit us (March 2020) or before the second wave started (February 2021), he said.

That’s because the second wave was far more severe and had greater ramifications.

The unlocks are now bringing about increased mobility.

“With cities cautiously reopening, confidence around jobs is seeing a major upturn, which in turn is increasing confidence around day-to-day expenditure of running households and even around disposable incomes for big ticket purchases and savings,” he said.

Confidence in the economy also remains low, though it has shown marginal improvement. The pandemic has been long drawn and unsparing in its impact. As a result, the economy will take longer to get back on grid, Ipsos said.

“At the same time mass immunization and staving off more infections should continue to be the focus,” Adarkar added.

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